GM stock @ Chapter 11

simond101 · #1 (**permalink**) 05-12-09, 05:18 PM

I am thinking about buying GM's stock at this point but I'm not sure about how Chapter 11 would affect my holdings. If I have it right when a company goes out of business or claims bankruptcy you lose your stock but if the company goes into chapter 11 you retain your stock. Is my thinking correctly? I really believe that if GM has an opportunity to restructure itself then its stock will come back in the next few years.

simond101 · #2 (**permalink**) 05-14-09, 09:52 AM

I found the answer,this link should answer the question What Happens to Stock and Bond Owners in Bankruptcy? - Will You Get Your Money Back?

Stocktrading101 · #3 (**permalink**) 05-21-09, 06:23 PM

If the company files for bankruptcy protection the stock becomes worthless. You do not want to be a part of this process

.

jjohnston · #4 (**permalink**) 06-01-09, 01:25 PM

GM just filed for Chapter 11... Is now a good time to buy, or should one wait for things to shake out longer. Because if they filed... is today a "new day" and the share holders before today already lost out, and now the shares people buy today, are clean and clear?? Or how does that work??

mburnz · #5 (**permalink**) 06-01-09, 08:47 PM

I may be new to all of this from my perspective I wouldn't touch it with the proverbial "ten foot pole". Out of the THOUSANDS of stocks offered I'm sure there are better and safer buys out there.

jjohnston · #6 (**permalink**) 06-02-09, 11:41 AM

I was just thinking they already filed, and GM is going to come back to be a stronger company. But I did some reading and heard something that they just filed, and in the coming weeks will liquidate share holders stocks, meaning the common holder gets nothing other than the shaft. My plan was to jump in as soon as the new GM stocks come out. figuring I could make a decent return with the post bankrupt stocks if I hold them for a few years...

Fredledingue · #7 (**permalink**) 06-14-09, 06:44 PM

Owners of GMGMQ stocks (the new GM's stock ticker) will get 1% of the company after restructuration under chap 11. This is already a miracle because in normal times, they should have zero or say, 0.1%. But GM's bankrupcy is all but normal.
At $1.20, common stock holders are valuing the company at twice its current estimated value.
And I wouldn't bet that the current estimated value will still be that much in one year.
I'm almost certain that after liquidation the company will still need to raise money, or that the entities owning it will sell their stakes at a discount of actual value etc.

So IMO, GMGMQ is not interresting unless you can get it under $0.40.

xkirax · #8 (**permalink**) 06-16-09, 07:08 PM

GM will not die, Period... Althought I bought 10,000 shares when it was $3 I bought another 10,000 shares when it hit .27 so Iono... if you ask me, its only my 2 cents(info), watch the tele, all the commercials and renovations, cap, and number of employees... yes they screwed up for sure, but in My OPINION I believe they're profitable